Note 6 - Restructuring

9 Months Ended

Oct. 01, 2022

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

In September 2022, our management approved and implemented additional contract cancellations and headcount reductions under the Q2 2019 Sales Plan, which focused on a restructuring of the global sales organization. With these actions, we incurred approximately $1.0 million of incremental restructuring costs in the third quarter and first nine months of fiscal 2022. No restructuring expense was incurred under the Q2 2019 Sales Plan during the third quarter and first nine months of fiscal 2021. Under this plan, approximately $3.1 million of total expense has been incurred through October 1, 2022. All actions planned under the Q2 2019 Sales Plan have been implemented.

Under the June 2017 Plan, which is described in the 2021 10-K, we incurred approximately $1.1 million of incremental restructuring costs in the third quarter of fiscal 2022 related to an impairment of the operating lease right-of-use asset for our partially vacated facility in San Jose, California. Including these charges, we incurred restructuring expense of approximately $1.3 million and approximately $0.1 million during the third quarter of fiscal 2022 and 2021, respectively; and approximately $1.6 million and approximately $0.5 million during the first nine months of fiscal 2022 and 2021, respectively. We have incurred approximately $23.2 million of total expense through October 1, 2022 under the June 2017 Plan, and all planned actions have been implemented.

These expenses were recorded to Restructuring charges on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accrued expenses and in Other long-term liabilities on our Consolidated Balance Sheets. The following table displays the activity related to our restructuring plans:

(In thousands)	Severance & Related (1)			Lease Termination & Fixed Assets			Other (2)			Total
Accrued Restructuring at January 1, 2022	$	251		$	7,130		$	—		$	7,381
Restructuring charges		303			1,562			640			2,505
Costs paid or otherwise settled		(154	)		(2,477	)		—			(2,631	)
Accrued Restructuring at October 1, 2022	$	400		$	6,215		$	640		$	7,255
Accrued Restructuring at January 2, 2021	$	246		$	8,233		$	664		$	9,143
Restructuring charges		15			531			—			546
Costs paid or otherwise settled		(165	)		(1,346	)		(664	)		(2,175	)
Accrued Restructuring at October 2, 2021	$	96		$	7,418		$	—		$	7,514

(1)	Includes employee relocation and outplacement costs
(2)	Includes termination fees on the cancellation of certain contracts